Time 2 Hrs. ORGANISATION OF COMMERCE & MGMT.

A Solutions Marks -35

Q.1 A. Fill in the blanks (5 M)
1. Businessmen are Trustees of the society. a] Representatives b] Members c] Trustees
2. In e-business payments have to be made Online a] in cash, b] on credit, c] online
3. The Karta in Joint Hindu family Business has Unlimited Liability. a] Unlimited b] limited c] joint
4. The minimum of members allowed in a co-operative society is 10 a] 20 b] 10 c] 7
5. For online transaction Registration is required. a] trading, b] registration, c] business

Q.2. Distinguish Between. (Any 2) (10 M)
1. Traditional Business Vs E-Business
Traditional Business E-Business
Meaning
Traditional business involves
business activities through personal
interaction between seller and buyer.
E-business involves business activities
undertaken through the internet.
Registrations For Purchases
In traditional business, there is no
need for registration for purchases.
In e-business, there is a need of
registration for purchases with the
online shopping site.
Delivery of Goods
There can be instant delivery of goods.
Delivery may take after 3 to 4 days from
the date of placing order.
Distribution Costs
The distribution costs are higher due
to need of sales force and support
staff.
Distribution costs are lower as there is
no need to appoint sales force.
Payment Terms
Credit period is offered and therefore
there are chances of bad debts.
Generally, credit period is not given, and
as such there are no chances of bad
debts.
Price
The buyers may have to pay higher
price due to the involvement of
intermediaries.
The buyers may get goods at lower price
as there are no intermediaries.
Business Timings
Generally, there are fixed business
timings.
Business transactions can take place
through 24 hours in a day.
Need for Internet
Traditional business transactions do
not require internet connection.
Internet connection is a must for e-
business transactions.
2. Sole trading Concern Vs Partnership Firm
SOLE TRADING CONCERN PARTNERSHIP FIRM
1. Meaning:-
Sole Trading Concern is the form of
business organisation which is owned
and managed by one person called as
sole traders.

In this form of business organisation
two or more person come together to
undertake a business activity and share
profits.
2. Membership:-
In sole trading concern minimum and
maximum membership is only one.

In partnership firm minimum
membership is two and maximum
membership is ten for banking business
and twenty for non-banking business.
3.Ownership:-
In sole trading concern all business
property is owned by sole trader alone.

In partnership firm, all business
property is owned by all the partners
jointly.
4. Agreement:-
In sole trading concern agreement is not
necessary.

In partnership firm agreement is
compulsory. It can be oral or written.
5. Capital:-
Capital enjoyed by sole trading concern
is less because it is provided by single
person.

In partnership firm capital is relatively
higher because it is provided by more
than one person.
6. Act:-
Sole Trading business is not governed by
any Act.

Partnership firm is governed by Indian
Partnership Act 1932.
7. Sharing of Profit and Loss:-
In Sole trading concern entire profit
belong to sole trader himself.

In partnership firm profit is shared
among partners in their agreed ratio
8. Managerial skill:-
In sole trading concern entire business
activity is managed by sole trader
himself.

In partnership firm all partners
contribute their skills, so there is
division of work and expertise.
3. Duty Paid warehouse Vs Bonded Warehouse
Sr.
No.
Points of
Distinction
Bonded Warehouse Duty Paid Warehouse
1. Meaning Bonded Warehouse is the
warehouse where imported
goods on which duty is not paid
are stored.
Duty Paid Warehouse is the
warehouse where imported
goods on which duty is
already paid are stored.
2. Location They are located within the
dock area.
They are located in a port-
town outside the dock area.
3. Markets The imported goods stored here
are mostly re-exported.
The imported goods stored
here are mostly for the
domestic markets.
4. Supervision The customs authority closely
supervises the working of these
warehouses.
These warehouses are not
supervised by the customs
authority. They are
supervised by port
authority.
5. Delivery Delivery of goods is done after
payment of Import duty;. In
case of re-export, the import
duty need not be paid, only
rent and service charges need
to be paid.
Delivery of goods can be
obtained after payment of
the rent charges of the
warehouse.
6. Purpose Main purpose would be either
the importer needs to re-export
the goods or the importer may
not be in a position to pay
import duty.
Main purpose would be
that the importer does not
have suitable warehousing
facility. Also, he may not
require immediate delivery
of goods.
7. Ownership Such warehouses may be
owned by private or dock
authorities.
Such warehouses are
owned by public
authorities.

Q.3. Short Notes (Any 2) (10 M)
1. OUTSOURCING

Outsourcing is the process of contracting a business function to specialized agencies. In doing
so, the company benefits in two ways:
1. It reduces its own cost.
2. It uses the expertise of the firm which specializes in a particular kind of service.
Generally companies outsource their non-core areas. e.g. in many corporate
organizations, hospitals etc. The canteen and sanitation services are usually outsourced to
contractors. The contractors enter into an agreement with the company for providing the service.
The waiters at the canteen or sanitation workers are not employees of the company but work
directly under the contractor. The company makes payments to contractor who in turn pays his
employees.
Now-a-days many municipal corporation and municipalities have outsourced collection of
household waste to private companies.

Need for Outsourcing
Today services all over the world are becoming highly specialized. Most services require
finely tuned skills. With increasing global competition, most companies are focusing on
showcasing their products or improving the quality of their goods. Due to this, many non-core
areas are being outsourced to firms who have an especially skilled work force. The concept of
outsourcing has emerged as a result of this thinking.

Advantages of Outsourcing
1. It leads to better efficiency and effectiveness.
2. The companies are able to focus their attention on improving the quality of their product.
3. Outsourcing leads to cost reduction for the company. The cost of outsourcing services is
much less than keeping such a large work force on the rolls of the company.
4. Manpower through outsourcing is available at a lower cost.
5. Investment requirements of the company are reduced.

Disadvantages of Outsourcing
1. There is always a danger of the misuse of company information by the contractor.
2. Many companies compromise on the quality of outsourcing in order to cut costs. This is
especially seen in the IT sector where companies try to get cheap manpower from the
other countries.
3. The quality of the outsourced service is sometimes not up to the mark
2. E-Banking
E-banking refers to electronic banking. E-banking is also called as Virtual Banking or Online
Banking, E-banking. Under E-banking system, all the working of the banks is done on
computerized system.
1. Automated Teller Machine (ATM) : ATMs are electronic machines which are operated by the
customer himself to deposit or to withdraw cash. For using an ATM, the customer has to obtain
an ATM card from his bank. To operate an ATM card, the customer has to insert the card in the
machine, he has to enter the password (number). If the authentication or password is correct,
the ATM permits a customer to make entries for withdrawal or for deposit. ATM provides 24
hours service and convenience for the bank customers.
2. Credit Cards : Credit Cards are issued by the bank to the persons who may or may not
have an account in their bank. Credit cads are used to make payments for purchase so that the
individual does not have to carry cash. Banks allow certain period to the credit card holder to
make payment of the credit amount. The bank may charge a high rate of interest if payment is
not done till the due date.
3. Debit Card : Banks are now providing Debit cards to their customers having savings or
current account in the banks. The customers can use this card for purchasing goods and
services at different places instead of cash. The amount paid through debit card is automatically
debited from the customers account.
4. Electronic Fund Transfer (EFT) : Under this system, money can be transferred from one
account to another account. There can be Direct credits, which includes dividend on shares,
interest on debentures, commission, salary, pension, etc and Direct debits which include
telephone and electricity bills, loan instalments, insurance instalments, credit card dues, etc.
5. Core Banking : Core Banking Solution or Centralised Banking solution is popularly
known as CBS. CBS is that banking system which makes banking convenient by changing the
status of a customer from Customer of a Branch to Customer of the Bank facilitating speedy
and effective banking anywhere and at all times.
6. Internet Banking : Computer and Internet are commonly used by the people. So as to
facilitate them, banks have started transactions over internet. The customer having an account
in the bank can log on to the banks website and access his bank account.
7. Phone Banking : Customer of the bank having an account can get information of his
account, make banking transactions like fixed deposits, money transfers, demand draft,
collection and payment of bills, etc. by using telephone.
Optional points
8. National Electronic Funds Transfer (NEFT) : NEFT refers to a nation-wide system that
facilitates individuals, firms and companies to electronically transfer funds from any bank
branch to any individual, firm or company having an account with any other bank branch in the
country.
9. Real Time Gross Settlement (RTGS) : RTGS refers to fund transfer system where transfer
of funds takes places from one bank to another on a Real Time and on Gross basis. Settlement
in Real Time means payment transaction is not subjected to any waiting period. The
transactions are settled as soon as they are processed. Gross settlement , means the
transaction is settled on one to one basis

3. Social Responsibility towards Employee
DEFINITION OF SOCIAL RESPONSIBILITY: H.R. BOWEN defines Social responsibility of
business refers to the obligation of business to pursue those policies, to make those decisions, or
to follow those lines of actions, which are desirable in terms of objectives and values of our
society.
The success and survival of any business organisation depends on efficient services provided by
its employees.

1. JOB SECURITY: -It is the responsibility of business organisation to provide job security to its
employees. It should provide its employees permanent jobs. It should not keep them temporary
for a long time. If they are not given permanent jobs then they will not work with commitment
and dedication.
2. FAIR WAGES: -It is the social responsibility of business organisation to pay fair wages to its
employees. It should also pay them bonus, medical allowance, traveling allowance etc. There
should be revision in the wages and incentives from time to time.
3. WORKING CONDITION: -The efficiency of employee depends upon working condition. It is
the responsibility of business organisation to provide good working condition to its employees.
There should be adequate lighting and ventilation. There should not be any dirt, dust or noise
pollution at the place of work.
4. PROPER PERSONNEL POLICES: -The business organisation should adopt fair personnel
policies in respect of recruitment, promotion, Transfer and training. There should not be any
kind of partiality in respect of recruitment, promotion and Transfer.
5. HEALTH AND SAFETY: -An efficient and healthy employee is an asset of the business
organisation. The company should take all the care to protect health of the people. It should
provide medical help, canteen facilities and free food services to its employees. Proper
maintenance of machines must be done to prevent accidents.
6. PARTICIPATION IN MANAGEMENT: -The business organisation should encourage its
employees to take part in the management of business. This can be done by inviting
suggestions from the employees regarding production, distribution etc. and issuing them shares
in the company.

7. CAREER DEVELOPMENT: Organisations must facilitate career development of their
employees. Career development can take place by:
a) Assigning challenging task.
b) delegation of authority
c) Encouraging for higher education.
8. EMPLOYEE WELFARE: Large organisations must provide proper welfare facilitates to the
employees such as
a) Canteen Facilities
b) Recreation Facilities,
c) Rest rooms etc.

Q.4. Long Answers: (10 M)
1. Define Joint Stock Company? Its Merits & De-merits?
!!!!!ALL THE BEST!!!!!
Time 2 Hrs. ORGANISATION OF COMMERCE & MGMT. B Marks -35
Q.1 A. Fill in the blanks (5 M)
1. The costliest means of transport is . a] Rail transport b] water Transport c] Air transport
2. Registration of a Joint stock company is a] compulsory b] not necessary c] optional
3 The members of Hindu Undivided family business are called .a] Karta b] partners c] co-
parceners
4. Bonded warehouses are located at ..a] Railway station b] villages c] Ports
5. The term e-business is derived from the terms and e-commerce. a] e-mail, b] e-pay, c] cash

Q.2. Distinguish Between. (Any 2) (10 M)
1. Traditional Business Vs E-Business 2. Sole Trading Concern Vs Partnership Firm 3.Commercial Bank Vs
Central Bank
Q.3. Short Notes (Any 2) (10 M)
1. Features of Co-operative Society 2. E-Banking 3. Social Responsibility towards Employee
Q.4. Long Answers: (10 M)
1. Define Joint Stock Company? Its Merits & De-merits?
!!!!!ALL THE BEST!!!!!